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Tata Sons gets 51% of CMC; HFCL bags HTL

Tara Shankar Sahay in New Delhi

The Cabinet Committee on Divestment, in its first privatisation of public enterprises in the fiscal 2001-02, on Friday decided to sell majority shareholding in Computer Maintenance Corporation and Hindustan Teleprinters, for a total of Rs 2.07 billion.

The government approved the induction of Tata Sons Ltd as a strategic partner in CMC through the sale of 51 per cent equity for Rs 1.52 billion.

Briefing newsmen, Union Divestment Minister Arun Shourie said that the CCD had also approved the sale of 74 per cent equity in HTL in favour of Himachal Futuristics Communications Limited for Rs 550 million.

The minister also said that the government had started the process of divestment in MECON in favour of a strategic partner to the tune of 51 per cent of the equity. Ten per cent of the equity will be sold off to employees.

Shourie said that CMC, India's infotech PSU major, has been categorised as being in the non-core sector. The government thus moved on its decision of February 1, 2001 to reduce state holding in CMC from 83.31 per cent to 26 per cent.

The divestment minister added that the government was moving in line with its decision to get out of businesses in the non-core sector here the private sector had established its presence.

To facilitate the sale, he said, the government had appointed KPMG as the global advisor for competitive bids and expressions of interest through newspaper advertisements.

Shourie said that the CCD will request the Comptroller and Auditor General for an early completion of audit to facilitate the transaction.
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